Proposal would have unemployed workers wait a week before getting jobless benefits

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The fund that pays Wisconsin’s unemployment benefits will be $2.8 billion in debt by the end of 2011.

And to help avoid that, the state’s largest business group suggests making laid-off employees wait a week before getting their first benefits checks. It means those without jobs for less than a week would get nothing and Jim Buchen of the Wisconsin Manufacturers and Commerce said it would save $80 million a year.

Jobless benefits are funded by business taxes. And Buchen told the Assembly’s Labor Committee Tuesday that up to a $0.25 billion a year in higher unemployment taxes and lower benefits would be needed to bring the fund to solvency.

State unemployment compensation administrator Hal Bergen said 36 states have some kind of waiting period before jobless workers get benefits.

But Dennis Penkalski of the U.C. advisory council says he won’t accept a delay because those out of work are hurting more than any other time.

The council is made up of both business and labor representatives.

And they hope to get a solvency plan to the Legislature this spring.

The state has borrowed almost $0.75 billion from the federal government to keep paying jobless benefits.

And Bergan says the interest on that will keep rising.

Also, Buchen says Washington will hit all companies with more taxes in 2012 if nothing’s done.

Tags: unemployment benefits, waiting period, wisconsin